The top suburbs for Gen Ys who want to buy their first home in Victoria have been revealed.
Domain Group chief economist Andrew Wilson has shared his top picks for first home buyers as well as some tips.
Dr Wilson says the growth of average incomes has slowed as prices have risen, meaning young people are stung by the continually rising housing market with no equity to bring to the party.
“A generation ago, you needed one strong income, but now you need two strong incomes to save,” he said.
Here they are:
Median price: $895,500 (house) and $585,000 (unit)
Weekly rent: $490 per week (house) and $385 per week (unit)
“The inner west has been an affordable pocket for those who want to stay close to Melbourne’s CBD on a budget, but suburbs such as Yarraville and Seddon are now far out of reach for young buyers.
Just 10km from the city, Newport is still comparatively affordable, with the report calling the suburb “up and coming area” for Gen Y to consider purchasing.”
Median price: $935,000 (house) and $690,000 (unit)
Weekly rent: $460 per week (house) and $410 (unit)
“For buyers wanting to get into the eastern suburbs market, the report names Chadstone as a solid investment option with good growth opportunities.
There plenty of new and older apartments to choose from in the suburb, which offers access to transport, Monash University and Holmsglen TAFE, and Chadstone Shopping centre.”
Median price: $420,000 (house) and $294,500 (unit)
Weekly rent: $330 per week (house) and $270 per week (unit)
“Melbourne first home buyers are turning to Geelong because they can still afford a good-sized house in the inner suburbs of the satellite city. Geelong is also beginning to attract young people with trendy cafes and foodie spots in town.
The report highlights the coastal lifestyle potential of the city too, with proximity to the surf coast and Bellarine Peninsula.”